Here in San Diego, I recently filled up at $4.56 per gallon for 87 octane. California always has some of the most expensive gasoline in the country. It looks like prices are headed even higher, as in-state refineries are closing.
Valero attributed its decision to “years of regulatory pressure (and) significant fines for air quality violations,” including an $82 million penalty levied in 2024. Phillips 66 similarly cited business challenges stemming from California’s strict environmental regulations.
“They have said that they cannot do business in the state of California,” Gipson reiterated. “The regulatory agencies have imposed on the refiners of California very stringent regulation that makes it very difficult for them to remain in the state of California.”
Once again dirty processes are forced out of state. So California can be clean. But then must pay others to make to their specs and pay shipping to import.
No problem for those with the resources to pay the price. But don’t be surprised with rising number of homeless or people living in their cars. Make it expensive and luxurious to live there and middle class will flee. No wonder firefighters earn $250k per year to live there. Maybe teachers should live out of state and teach by zoom.
It’s already pricing many out of here, and once out, they find they maybe can’t afford to come back! Granddaughter & husband found out, bought a small place in PA, had dreams of get back out here, but the high rents, they can’t rent theta PA place for enough to pay that mortgage, much less pay CA rental prices… Stuck, they are, in a purple state, they thought was more blue… Oh, and they also bought a Rottweiler, now over 100 pounds so even if they could afford the rent here, it would be far to find a landlord willing to be OK with the puppy…
Yes, gasoline demand in California is trending downward. This decline is primarily attributed to the increasing adoption of electric vehicles (ZEVs) and improved fuel efficiency. While gasoline consumption is still significant, it’s notably lower than previous years, with a noticeable drop since 2017.
Here’s a more detailed look:
Reduced Consumption:
Gasoline use in California has decreased by over two billion gallons per year since 2017.
Per Capita Decline:
Gasoline use per person has also fallen, from 445 gallons per year in 2005 to under 350 gallons per year in 2024.
ZEV Impact:
ZEVs have already reduced gasoline sales by a significant amount, and this impact is projected to grow in the coming years, according to Stillwater Associates.
Other Factors:
Factors like increased fuel efficiency, the shift to renewable fuels, and even lower population growth also contribute to the overall decline in fossil fuel consumption in the state, according to Stillwater Associates.
Refinery Challenges:
Despite the decline in demand, California is also facing challenges with its refining capacity, potentially leading to supply shortages and price increases.
Have a friend who lives in Marin County, visited them in 2023, my first trip to the SF area. My impression was that it was one of the most attractive places to live in the entire Country. The only pricing shock for me was the cost of housing. The other costs seemed big-city normal, but the cost of homes were totally unobtainable from my perspective. And rents were staggeringly high as well, of course. I totally get that being the case, completely understand why people want to live there. The cost of gas will help drive out more lower-middle class workers, but the wealthy won’t even blink at $8/gal gas. EV’s should proliferate, but commercial power is really expensive too, so need your own solar arrays to win that battle. And the wealthy can easily make that investment.
Cue the calls for the demise of California, but the critics have been getting it wrong for decades. Gas prices will not be the nail in the coffin, either. But it is going to be darn near impossible for working class people to live in the desirable areas and attain their financial goals.
I’m just a little North, next County, Sonoma, so we kind of blend with North Marin, and our Western sides to the coast are near identical, rugged coast, great views, old ranches… Worked all over Marin for many years, but one had to have bought in early to afford to stay, but many manage it, just fine.. I think, when my BIL was burned out in one of the firestorms, several years ago, the insurance company put them in a small condo in Marin, $4K a month… ad it was small… They were glad to move on, bought a home in the town of Sonoma, have been upgrading ever since…
Gas here has been near $5/g for ages, but being retired, drive a hybrid, not a huge expense… My old F150, however with its 38 gallons tank, is pricey to fill, but if traveling, it’s just part of the game… Other option is to not take the RV,… So now we only use it once or twice a year, just out to the coast for a long weekend…
Other parts of the SF Bay Area are as bad or even higher, hard to imagine how we sweated paying $13,8K for our first home, but it let us step into this one at $28K a few years later… Scary then, too..
Ouch… Seen some heavy hail in online videos, not a time to go out anywhere!
Just wintry my local Chevron, $4.899/gal… Costco, a few miles up the road runs ~40 cents less generally… Likely all comes from the same refinery… I remember back in the '50s when I worked at a local Signal station, owner was lucky to make a nickel a gallon, but that’s pretty ancient history I guess…
